Quality Management in Costa Coffee: A Comprehensive Analysis

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QUALITY IN BUSINESS
ORGANIZATION
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Table of Contents
Introduction......................................................................................................................................3
What is Quality?..............................................................................................................................4
Importance of Quality in Costa Coffee........................................................................................4
Working towards a quality System..................................................................................................5
Advantages:.................................................................................................................................5
Disadvantages..............................................................................................................................6
Quality Standards.............................................................................................................................7
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
The assignment gives light on managing the quality of the business organization. The business
keeps on flourishing only because of the quality of the products and services which is given to
the customers by the business. This assignment will cover the quality management for the
company Cost Coffee about this company the quality control management, the advantages and
disadvantage of the quality management etc. will be discussed.
Costa Coffee is a well known British Coffee company which was established i9n the year 1971
by Bruno Costa and Sergio Costa. The company is headquartered in Dunstable , England, UK
and is a subsidiary of the Coca-Cola. The company is having more than 3882 franchise and is
serving worldwide with a variety of coffee. Costa Coffee is mainly serving Coffee, Tea,
Sandwiches, sweets, snacks and ice teas. The company is generating near about 1.167 billion
pounds of revenue every year.
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What is Quality?
Quality refers to the standard, grade, level etc. of particular goods or services which is offered to
the customer by the company. The quality standards depend on the perception and expectation of
the customer which they have from particular services and goods availed by them. Quality of the
product or the services adds a distinctive characteristic possessed by any of the customers. The
quality of any product and services is recognized by the cert9ification of ISO which is a globally
recognized quality certification company (Nanda, 2016).
Importance of Quality in Costa Coffee
Costa Coffee is a well-recognized brand and it is popular across the globe because of the quality
it is providing to the customers. The following is the importance of the quality of Costa Coffee
Customer Retention: Costa Coffee attracts and retains the customer with the help of the quality
of the coffee and other beverages offered to the customers. This has always motivated the
company to maintain its quality and standard.
Meeting customer expectation: The maintenance of the quality helps the Cost Coffee to be
distinctive from all the other brands. As it adds a distinctive taste and aroma to the coffee and tea
offered to the customers resulting in meeting customer expectations.
Revenue Generation: The best quality of food and beverages offered by Costa Coffee gives a
level of satisfaction to the customers and make them visit frequently to Costa Coffee which
ultimately helps in revenue generation of the company.
Goodwill: The maintenance of the quality helps Costa Coffee to maintain the goodwill in the
market. The reason being the good quality of the food and beverages and the ambience which is
present in the cafes of Costa Coffee attracts the customers and ultimately results in high revenue
generation (Nicholas, 2018).
Meeting business standards: The quality control of the coffee and other beverages gives a legal
strength to Costa Coffee in the coffee industry. This gives certification to the company and gives
strength to it and gives a sense of trust among the customers all this together helps the business
to meet the industry norms and standards.
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Managing the cost: The high quality of the coffee beans used in the coffee prep will give a
different taste and aroma to it this will help in higher sales and ultimately will help Costa Coffee
to maintain the cost of the operation of the cafes at multiple locations:
Working towards a quality System
It is important to have a quality system for Costa as it gives many benefits to the company in
several manners. The company has to take a few steps towards the quality assurance system with
the help of the recognized organization which provides the certification for the quality assurance
purpose. The following are the advantages and disadvantages of the quality system:
Advantages:
Reducing waste and cost: The quality system is and the ISO certification is an achievement for
every organization. The certification given to the company motivates Costa Coffee to maintain
the cost-effectiveness so that there is no loss to the company. Costa Coffee is served with ISO
14001 sustainability certificate this motivates the company to maintain sustainability. Costa
Coffee is maintaining sustainability by managing waste coffee cups. Costa Coffee is also
focusing on the environmental responsibilities that the company is required to fulfil.
Reduces Variability: The quality assurance certificates give a benchmark in front of the
company and the company strives to maintain that quality. This whole process of quality
assurance enables Costa Coffee to reduces the variability in the production and preparation of the
coffee and other beverages. The reduced variability helps in maintaining a level of the coffee
and tea which are offered to the customer, the taste in the coffee, tea, snacks is the same every
time and hence reduces variability (ASQ, 2019).
More Transparency and Greater Accountability: The quality recognition certificate which is
given to Costa Coffee gives a sense of accountability in terms of the quality which is given to the
customers. It gives a sense of moral responsibility of the company to offer the best of the quality
to the customers. The best of the quality, taste and aroma gives a higher level of transparency
among the customers which increases the goodwill and reliability o9f the company among the
customers.
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Growth: The quality assurance of the Costa Coffee promotes the growth factor to the company s
the company can expand further based on the popularity, its brand image and the quality offered
to the customers by the company. The company gets more opportunities in terms of getting more
ideas and collaboration, advertisement etc. and customer satisfaction will also be a big advantage
for Costa Coffee for its expansion and growth.
Disadvantages:
Employee resistance: There are many chances that the employees may show resistance in the
cooperation of the maintenance of the quality of the coffee offered to the customers. Many
changes are required to be taken by Costa Coffee to maintain the quality of the coffee and tea
offered to the customers. There is much need of continuous improvement for which many
changes are required to be taken in the organization and during this process, the employees may
give a negative response and can show resistance towards the changes for the betterment of
Costa Coffee.
Expensive affair: The process of quality maintenance is overall an expensive affair as a certain
level of efforts is required to be done in making the quality more and more better. In addition to
this, it is costly in terms of getting and keeping the certification of ISO is a very costly affair.
The tools and techniques to obtain the ISO certificate also lead to high cost although it results in
better performance of Costa Coffee.
Suppression of creativity: The process of continuous improvement can lead to the suppression
of the creative ideas that are generated in the mind of the employees. The process and the
implementation of better performance suppress and discourage the ideas which are given by the
employees. This sometimes leads to employee turnover and job dissatisfaction among the
employees (ASQ, 2019).
Time-consuming: The process of making Costa Coffee better in terms of quality and
environmental friendly is very time-consuming. The process involves many changes in the
preparation, obtaining if the coffee beans, tea leaves etc. it leads to slow progress and long
procedure. Meanwhile, the employees may show resistance towards the change I the betterment
of the organization. To convince the employees and explaining them the benefits of the change
leads to more time consumption.
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Quality Standards
The quality standard is a defined document which is to be maintained by the company by
fulfilling the specification, guidelines and characteristics. All these are used to make ensure that
the materials, products, process and services are fit for the purpose (Nicholas, 2018).
The quality standards set a benchmark for every company to maintain at least the minimum basic
quality of the product and services provided to the customer. The main focus is to improve the
current quality and upgrade the product in terms of quality, performance and durability. There
are various methods to implement and measure better performance like TQM, PQASSO.
ISO: ISO refers to the International Organization Standardization, it aims at giving the
standardized certificates to the organization across the globe o the achievement of a certain level
of quality. The following are a few certificates:
ISO 9001:2015 This is given for the Quality Management Systems which is well known for the
quality management standard for many companies across the globe.
ISO 14001:2015 This is given for the fulfilment of the environmental management systems by
the company (ISO, 2019).
ISO/IEC 27001:2013 This is given to the companies for the fulfilment of the I.T and digital
securities in any sized organization.
The above awards are recognized on a global level and every company strive to get these
certificates as it adds on to the goodwill, performance and higher customer satisfaction for the
company. Costa Coffee is awarded the ISO 14001 certificate as the company is fulfilling the
environmental obligation. To get such certificates, every organization has to adapt TQM,
KAIZEN in the part and process of its operation.
TQM: Total Quality Management refers to the management of the quality that is given to the
customers by any company. Employees of Costa Coffee is involved in the contentious
improvement of the product and the services they are offering to the customers. TQM process
works on 8 principles which are as follows;
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Customer-focused: TQM is a customer-focused process because the main focus is to satisfy the
customer by giving the best quality products and services to the customers.
Total employee involvement: TQM process is carried out for contentious improvement in the
production for which the employees are required to get involved fully in the process in Costa
Coffee.
Processed Centre: The unwanted and unnecessary steps are been removed from the process
which enables the implementation of TQM effectively in Costa Coffee. The employees of Costa
Coffee focus on the up-gradation of the process of making the coffee (ASQ, 2019).
Integrated System: The process of TQM is an integrated system as it works on the roots of the
process. It focuses on the major steps that are required to be taken in the effective
implementation of TQM.
Strategic approach: The process of TQM focuses on implementing the process of improvement
in lieu with the achievement of the vision, mission and goals of the Costa Coffee. The new ideas
and strategies are implemented with a strategic view and planning.
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Customer Focused
Total employee involvemnet
Processed centred
Integrtaed System
Stratgic and sytematic approach
Continual improvement
Communication
Fact based decisison

Continual improvement: TQM aims at the continuous improvement of the process used in
Costa Coffee analytically and creatively. This enables the successful implementation of TQM in
the organization.
Communication: The implementation of the TQM process results in many changes which are
required to be taken by the employee. It is important to have effective communication among the
employees about the need and requirement of the TQM in Costa Coffee.
Fact-based decision making: The implementation of TQM is important in Costa Coffee but it
should be done based on the data and the performance measures. The decision should be taken
once the data is being analysed as this will help in taking much more effective decisions.
Other than TQM Kaizen is also very much important, this main focus on the improvement of the
process which is being carried out in every organization. This works on making positive changes
in the current process and results in better performance and higher customer satisfaction (ASQ,
2019).
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Conclusion
The assignment has given the light on the management of the quality which is important for
Costa Coffee. The importance of the quality is well-explained din reference to the Costa Coffee.
Further, the advantages and disadvantages of the quality system are also explained about the
chosen organization. The quality standards of is also explained and the different quality
certificates for different purposes is given is also discussed in the organization.
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References
ASQ, 2019 WHAT IS TOTAL QUALITY MANAGEMENT (TQM)? online available at:
https://asq.org/quality-resources/total-quality last accessed on 28/8/2019
Dietz, T., Grabs, J. and Chong, A.E., 2019. Mainstreamed voluntary sustainability standards and
their effectiveness: Evidence from the Honduran coffee sector. Regulation & Governance.
Hislop, D., Bosua, R. and Helms, R., 2018. Knowledge management in organizations: A critical
introduction. Oxford University Press.
ISO, 2019 online available at: https://www.iso.org/home.html last accessed 28/8/2019
Molina-Azorín, J.F., Tarí, J.J., Pereira-Moliner, J., Lopez-Gamero, M.D. and Pertusa-Ortega,
E.M., 2015. The effects of quality and environmental management on competitive advantage: A
mixed methods study in the hotel industry. Tourism Management, 50, pp.41-54.
Nanda, V., 2016. Quality management system handbook for product development companies.
CRC press.
Nicholas, J., 2018. Lean production for competitive advantage: a comprehensive guide to lean
methodologies and management practices. Productivity Press.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management:
Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
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